Minnesota Session Laws - 2003, Regular Session

                             CHAPTER 52-S.F.No. 645 
                  An act relating to landlords and tenants; providing 
                  for assignment of certain eviction actions to city 
                  attorney; providing for interest rates on security 
                  deposits; amending Minnesota Statutes 2002, sections 
                  504B.171, subdivision 2; 504B.178, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 504B.171, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BREACH VOIDS RIGHT TO POSSESSION.] A breach of 
        the covenant created by subdivision 1 voids the tenant's or 
        licensee's right to possession of the residential premises.  All 
        other provisions of the lease or license, including but not 
        limited to the obligation to pay rent, remain in effect until 
        the lease is terminated by the terms of the lease or operation 
        of law.  If the tenant or licensee breaches the covenant created 
        by subdivision 1, the landlord may bring, or assign to the 
        county or city attorney of the county or city in which the 
        residential premises are located, the right to bring an eviction 
        action against the tenant or licensee.  The assignment must be 
        in writing on a form provided by the county or city attorney, 
        and the county or city attorney may determine whether to accept 
        the assignment.  If the county or city attorney accepts the 
        assignment of the landlord's right to bring an eviction action: 
           (1) any court filing fee that would otherwise be required 
        in an eviction action is waived; and 
           (2) the landlord retains all the rights and duties, 
        including removal of the tenant's or licensee's personal 
        property, following issuance of the writ of recovery of premises 
        and order to vacate and delivery of the writ to the sheriff for 
        execution. 
           Sec. 2.  Minnesota Statutes 2002, section 504B.178, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INTEREST.] Any deposit of money shall not be 
        considered received in a fiduciary capacity within the meaning 
        of section 82.17, subdivision 7, but shall be held by the 
        landlord for the tenant who is party to the agreement and shall 
        bear simple noncompounded interest at the rate of three percent 
        per annum until May 1, 2004 August 1, 2003, and four one percent 
        per annum thereafter, computed from the first day of the next 
        month following the full payment of the deposit to the last day 
        of the month in which the landlord, in good faith, complies with 
        the requirements of subdivision 3 or to the date upon which 
        judgment is entered in any civil action involving the landlord's 
        liability for the deposit, whichever date is earlier.  Any 
        interest amount less than $1 shall be excluded from the 
        provisions of this section. 
           Presented to the governor May 13, 2003 
           Signed by the governor May 16, 2003, 4:07 p.m.